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According to Gail Vaz-Oxlade, Canada's personal finance expert, graduates are coming out of school with record levels of debt. In her easy to understand book, the author outlines ways in which parents and students can make plans to minimize such debt. Included is information on the Registered ... Read More »

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According to Gail Vaz-Oxlade, Canada's personal finance expert, graduates are coming out of school with record levels of debt. In her easy to understand book, the author outlines ways in which parents and students can make plans to minimize such debt. Included is information on the Registered Education Savings Plan and the Canada Learning Bond.

Lots of really good "hard facts" about using RESPs to support your child's education. Up to date (2013) and Canadian, this is a useful read for any parent looking forward to the financing of college and university. Highly recommended.

Summary

The autumn is when high school students and their parents turn their attention to post-secondary open houses, information nights and applications. It is also a time to consider the cost of a post-secondary education.

According to Gail Vaz-Oxlade, Canada's personal finance expert, graduates are coming out of school with record levels of debt. In her book, Saving for School, she outlines ways in which parents and students can make plans to minimize such debt.

She recommends that parents set up and start contributing to a Registered Education Savings Plan as early as possible. The RESP is a tax free investment vehicle which includes a grant that the government gives to families as an incentive to save for their children's post-secondary education.

Vaz-Oxlade walks through the process of choosing a RESP provider and the various ways to invest. She also warns against high fee RESP providers. Do your homework!

She touches upon the Canada Learning Bond, a grant paid by the government of Canada, as a means to assist low income families with saving money for their children's education.

The author also suggests encouraging family and friends to contribute to your child's RESP on their birthday and other special occasions; that students apply for scholarships and government grants and most importantly learn to manage money.

Despite the best laid plans, students may have to borrow some money to see themselves through school. The author suggests looking at potential earning capacity and recommends borrowing no more than one year's net salary.

In the words of Gail Vaz-Oxlade, "the less debt your kids leave school with, the better their lives will be."